Lion Travel Service Co (雄獅旅行社) yesterday said that it expects to break even this year, ending three consecutive years of losses caused by the COVID-19 pandemic.
Lion Travel general manager and spokeswoman Ann Lai (賴一青) said the company expects revenue to rise to 50 percent of pre-pandemic levels this year, after having its operations upended by the virus from 2020 to last year.
Taiwan’s reopening in October last year has allowed overseas travel to recover, Lai said, adding that the reopening has not weakened demand for domestic tourism.
Photo: CNA
“Recovery in air transport capacity will be the biggest uncertainty,” she said.
Long-distance air transport capacity has returned to 40 to 50 percent of pre-pandemic levels in the US and Europe, and 30 to 40 percent of the pre-pandemic level in Japan, Lai said, adding that demand for overseas travel would peak in the summer.
The prices of overseas package tours rose 20 to 30 percent from pre-pandemic levels and are unlikely to fall soon, due to tight air capacity, higher hotel rates and other cost increases in the supply chain, she said.
The cost of group tours for the upcoming cheery blossom festival in Japan are 20 to 30 percent higher from pre-pandemic levels, Lai said.
Meanwhile, the cost of domestic tours for the upcoming Lunar New Year holiday are up 10 percent from pre-pandemic levels, she said.
Lion Travel would dynamically adjust its packages and prices in response to market changes, she added.
The company has secured 15 percent of all Japan-bound airplane seats through charter flights, Lai said.
Lion Travel is also looking at a fast recovery in cruise tour demand this summer, she said, adding that average group charges have climbed 20 percent for 24 voyages.
The pandemic has prompted the company to evolve into a lifestyle brand, and tap into cultural tours at home and abroad, she said.
Lion Travel reduced the number of physical offices from 80 to 20 in the past three years to cut losses, but plans to add 10 to 30 offices this year in line with business improvement, Lai said.
The company would set up offices in Vietnam, Malaysia, Indonesia, Germany and other location to better integrate tourism resources and serve its customers, she said.
Lion Travel plans to expand its staff to the pre-pandemic level of 3,600 people, from 2,000, Lai said, adding that it has raised average monthly wages by 15 percent to NT$32,000 this year.
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